Jul 02, 2012
R827bn tax collection target setBack
Pretoria|Africa|Business|Finance|Projects|Sustainable|transport|Water|Africa|South Africa|Energy|Manufacturing|Service|Services|Infrastructure|Pravin Gordhan
Speaking at the official opening of the 2012 tax season, in Pretoria, he said that to ensure sustainable economic growth, larger revenues were required; however, the only way to ensure increased revenue was to grow the economy and create tax-paying-level jobs.
South Africa also required the establishment of more businesses, particularly with an increased commercial base, and an increased production base, especially in manufacturing.
The South African Revenue Service (Sars) is expecting to collect over R827-billion in revenues from the entire South African tax base in the 2012 tax season and R927-billion in 2013.
Total revenue collection grew from R114-billion during the 1994/95 tax season, to over R742.7-billion in 2011. Of this, 12-million South African individual taxpayers, last year, accounted for R251.6-billion, or 33.8% of all revenue collection. Business activities, excise tax, corporate tax, VAT, capital gains and dividends, besides others, contributed the remainder.
At March 2012, South Africa held 13.7-million registered individual taxpayers, a jump from 1.7-million in 1994 and 6-million in 2010.
The number of companies that have registered for income tax had increased from 422 000 in 1994, to more than two-million in the 2011/12 financial year.
There were currently 664 000 registered for VAT in South Africa, up from 397 000 in 1994 Further, the number of registered employers grew from 177 000 in 1994, to a current 385 000.
Gordhan said the country aimed to invest in significant infrastructure projects and other activities to stimulate growth, with R845-billion earmarked for energy, transport, water and telecommunications infrastructure over the coming three years.
“If there is no growth plan accompanying a fiscal [plan], then economies will not be able to work their way out of economic difficulties,” he noted.
The Finance Minister also said that the relationship between government and taxpayers was important for South Africa to host a viable and meaningful democracy.
Every citizen was a part of growing South Africa and ensuring that the country maintained the financial strength and stability to absorb the “formidable” impact of the financial crisis of 2009.
“We have managed over the last ten years to maintain a low debt load, and while gross debt may migrate to 42% or 43% over the next three years, we are still better off than most countries as far as the debt load is concerned,” Gordhan said.
However, he pointed out that the R60-billion revenue lost during the recession had not yet been recovered and that government was working on sustaining its low debt while attempting to deliver services to citizens.
By last year’s deadline a record 4.86-million individuals and trusts had submitted their tax returns on time – 23% higher than the previous year.
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Video News
Updated 3 hours ago A survey conducted by EY show that Acciona Energy's activities in South Africa have contributed $295-million to the country's gross domestic product (GDP) and created over 9 500 jobs. The goal of the survey, entitled ‘Acciona Energy in South Africa: A business...
Updated 6 hours ago The general perceptions, often misinformed, surrounding nuclear development and South Africa’s nuclear programme need to be unpacked and clarified, so that citizens can make their own informed decisions, rationally, around the subject, industry proponents urged on...
Updated 6 hours ago South Africa launched its third National Action Plan (NAP) on Friday, which includes a high-level commitment to creating a public register of beneficial ownership information. The NAP was part of the Open Government Partnership (OGP) discussions, which were held in...
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
This Week's Magazine
Following the drop in commodity prices and China’s demand for Africa’s resources, African economies were slumping and gross domestic product growth was stagnating in most of the continent’s emerging markets, said the New Partnership for Africa’s Development, or...
The New Development Bank, a multilateral lender formerly known as the Brics Development Bank, will provide $811-million in a first round of loans for clean energy projects in four nations.
South African car and bakkie exports into Africa declined for the third year in a row in 2015, falling from 79 228 units in 2012, to 77 589 units in 2013, 60 189 units in 2014, and 41 446 units last year – this according to the Automotive Industry Export Council’s...
Networking systems multinational Cisco is training 75 people as part of a pilot project to develop specialist networking skills in South Africa, says Cisco South Africa CTO Vernon Thaver. The trainees were nominated by and selected from Cisco’s local partners and...
The threat landscape is changing, along with technologies, impacting on new fields, such as industrial infrastructure, which is becoming increasingly connected. Smart cities are also developing fast through connected devices, Web services and cloud solutions, but...